Russian troubles force Carlsberg to downgrade

August 20th, 2014 2:59 pm| by admin
facebooktwittergoogle_pluspinterestmail

Uncertainty due to the ongoing crisis in Ukraine and financial issues in Russia have led to Danish brewery giant Carlsberg downgrading its expectations for 2014.

Instead of the initially predicted high single-digit percent organic growth, Carlsberg now expects low to middle single-digit growth for 2014. The same goes for its profit margins.

The company’s beer assets in the Russian market fell by 6-7 percent during the first half of 2014, and that trend is expected to continue.

“The market was impacted by a slower economic growth in Russia that impacted overall consumer spending negatively,” Jørgen Buhl Rasmussen said in a Carlsberg press release.

“The Russian market has become increasingly challenging, and with the current geopolitical tensions, we do not expect market conditions to ease over the remainder of the year.”

READ MORE: Carlsberg hanging tight in Russia

Huge market
Analysts had expected Carlsberg would suffer because of the political and financial situation surrounding the conflict in Ukraine, but hadn’t expected Carlsberg to have to downgrade.

Russia is Carlsberg’s largest single market and makes up the majority of the company’s business in eastern Europe. The Russian division had a turnover of almost five billion kroner in the second quarter, while operating profits were 1.5 billion kroner.

Queen of S-ass
Roskilde 2015: Menaj á two stars
  Whether it was the late afternoon heat yesterday, a week of party...
13 weeks ago Kayser met Kaysen, now the results are here
Flex with Becks Week 13: Don’t stop me now ’cause I’m having a good time
This is it: the final week of my three-month fitness challenge with KayserF...
The barons and John quickly fell out, and he died a year later
Trading Kingdoms: Still relevant 800 years later
Earlier this month, celebrations to mark the 800th anniversary of the seali...
The awesome foursome gave a sweaty, feisty, gutsy performance (all photos: Ella Navarro)
Roskilde 15: Breaking boundaries and we like it
  Roskilde was burning hot, but this didn’t prevent a sizeable cr...
'LEGENDARISK!' was the cry of the night (photo: Becks Kaysen)
Roskilde 2015: Legendary ex-Beatle Rocks-kilde
  Whether you’re a fan of Paul McCartney or share the opinion tha...
Festivals are about more than just the music, it would seem (photo: Smukfest.dk)
Today’s date: Skanderborg kicks off
On this day 35 years ago in 1980, a Danish festival institution was born as...